Valdor to buy VideoWare for $500,000 (U.S.), note

Feb 21, 2014

US$1,800,000/YR STREAMING VIDEO ACQUISITION RECEIVES APPROVAL

Valdor Technology International Inc. has received approval from the TSX Venture Exchange for the acquisition of the business and all the assets of VideoWare Inc., a wholly owned subsidiary of ViewCast.com Inc., located in Grapevine, Tex. VideoWare has been in business for eight years and revenue for the calendar year ending December, 2013, was in excess of $1.8-million (U.S.).

Valdor acquires the business and assets of VideoWare with payment of $500,000 (U.S.) following receipt of TSX-V approval. An additional payment of $600,000 (U.S.) is secured by a promissory note to be paid by March 21, 2014. A 7-per-cent royalty on gross sales from the VideoWare business will be paid to ViewCast over a five-year period, to a maximum of $1.75-million (U.S.). Valdor is financing the acquisition of the VideoWare business and assets through a combination of debenture and equity financing. (Please see Valdor news release dated Jan. 29, 2014.)

Elston Johnston, chairman of the board and a director, states: “We are acquiring an asset that is in a great business sector and that has industry leading product lines. In addition to a business in its growth mode, we are acquiring a strong, experienced and motivated management team. We are confident we have both the team and product lines to aggressively grow this business. Our new portable GoStream line is in high demand and we are just now beginning to deploy it.”

About VideoWare

VideoWare is in the streaming media industry, and markets the Niagara and GoStream product lines internationally. There are four patents associated with these product lines. Streaming video is the future of television and Valdor management believes now is the time to enter this compelling business sector. In addition to the price versus value argument supporting Valdor making this acquisition: 1) the streaming video industry is converting to fiber optics; 2) VideoWare customers are a market for fiber optic components, unrelated to its video streaming and; 3) VideoWare management, who are part of the acquisition, has significant experience and contacts in the fiber optics industry.

About the fiber optics industry

Fibre optics is the future of communications. The signal transmission business is in the early stages of a fibre optics bull market. Signal transmission in its many and various forms is being converted from electrical to fibre optics. A comprehensive report by Global Industry Analysts Inc. on the fibre optic components market projects that the fibre optics market will reach $42-billion (U.S.) by the year 2017.

http://www.valdor.com/fiber-optic-connectors.php?type=2&page=news&chc=7